Moss.Earth uses NFT, crypto-carbon loans to combat climate change

Carbon credits are still only in their early days, but some already believe that the system is in dire need of digital conversion.

Among them are Moss.Earth founder and CEO Luis Felipe Adaime, who uses the words “dysfunctional” and “distorted” to describe the current market.

He argues that it should be complete digitized and standardized – and should exist mostly on the blockchain.

His São The Paulo-based startup seeks to do so by tokenizing carbon credits derived from the Amazon rainforest and introducing other Web 3.0 applications to the environmental sector.

Individuals as well as companies of all sizes can purchase Moss.Earth’s MCO2 tokens to offset their own carbon emissions, and the proceeds go to “reputable environmental projects” that work to save the Amazon rainforest, he says AFN.

The token is also available for trading on major cryptocurrency exchanges such as Coinbase, Twinsand Bitcoin Marketand on The whole network. One MCO2 token equals one ton of saved carbon dioxide, Adayem says.

Since the launch of MCO2, Moss.Earth has allocated $ 30 million to Amazon conservation projects saved 301 million trees, and avoid 1.33 million tons of emissions. As customers the company considers some of the largest corporations in Brazil Goering, Arezzoand iFoodas well as North American financial institutions An asset of one river and Skybridge.

Moss.Earth, founded in 2020, has just emerged $ 10 million to fund Serie A to further develop its vision. SP Ventures and Acre Venture Partners led a tour featuring with Jive, Flora, Arrington Capitaland Handicrafts.

Tokenization of carbon credits

Adaim calls traceability and security the main reasons for tokenization of carbon credits against disseminating and monitoring their traditional routes. The way the market registers transactions and controls obscene games and fraud is still quite old-fashioned digitally; it leads to risk ‘double the cost”, Loans sold for projects that did not exist, and other dubious activities.

Adaim argues that tokenizing loans makes them much easier to audit. “Once something is in the blockchain, you can’t spend it twice,” he says. Moss also uses third-party audit companies to go through the transaction book and provide MCO2 tokens only once.

If the loans are not part of a chain of blocks, the buyer should depend on the credibility of the conservation project or on the carbon credit registries that act as observers for such transactions. According to Adaima, they use “incredibly outdated technology”.

Continued calls

There is no shortage of discussions around the veracity of carbon credits.

Some schemes have been labeled as form of greens giving large corporations and others a license to continue to pollute the environment.

Meanwhile, pBlockchain lending raises additional environmental concerns, as cryptocurrency mining – the process of confirming transactions – can consume huge amounts of energy. Acknowledging these concerns, Adaim says all of Moss.Earth’s assets on the blockchain are “born carbon neutral”.

The startup “monitors transactions and the general accountant and continuously removes the required amount of reimbursed carbon credits to neutralize – or reduce from zero – greenhouse gas emissions from its tokenization activities,” He wrote in a blog for cryptocurrency exchange Twins earlier this year.

To AFNhe argues that cryptocurrency mining “Throws out less and less because the whole system is based on the use of incentives for miners to use energy at the lowest cost.”

“Since solar and wind energy has become [cheaper] there is already an incentive for bitcoin mining companies to stop using coal-fired power plants to produce their energy. ”

NFT and more

Adime says Moss.Earth is increasing the number of its customers, including various sectors, as well as more companies in the US and Europe.

Brazil also remains a key part of the company’s strategy. «If there is a place where you can get carbon credits, it is in Brazil, ”says Adime.

“Brazil has half of the world’s estimated carbon stocks because we have so many of the world’s rainforests and much of the world’s sustainable agriculture. A company like ours that focuses on Brazil will usually have a slight advantage in building this. ”

Expanding its Web 3.0-based offerings is another work being done for Moss.Earth. For example, now the company’s customers can purchase irreplaceable tokens (NFT) to own part of the Amazon rainforest.

Moss acquires land for these NFT through its subsidiary Terra Vista Gestora de Recursos LTDA. In January 2022, he acquired 50 hectares of Fazenda Rio Azul (Blue River Farm) in Pará and then issued its shares as NFT. Moss emphasizes on his website that a person buys actual land when buying NFT, not just finances land conservation.

One NFT purchased from Moss.Earth is equal to one hectare of forest – about the size of a football field.

Buyers can digitally monitor their land with remote sensing tools provided Descartes Laboratories. They are also legally subject to certain restrictions. According to Moss.Earth, they cannot “burn, waste or cut down land in any way.” In addition, a person can do whatever he wants with the land – including reselling it by selling his NFT – provided that it “does not disturb the local ecological balance.” Without delving into the specifics, the company says it will in the future organize trips for curious owners to visit their land.

NFTs for Blue River Farm have become available for purchase at The high seas Marketplace in January, and Adime says the company sold about $ 100,000 in a couple of hours. The second party just went on sale.

Moss.Earth says it hopes to repeat the Blue River Farm project to build a 15 million-hectare “green wall” with NFT support to curb further deforestation in the Amazon. Moss.Earth uses NFT, crypto-carbon loans to combat climate change

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